Identify and explain the directives for the productive use of SWOT analysis. Which directive do you think is the most important? Why?

Whether a firm receives the full benefits of SWOT analysis depends on the way that the manager uses the framework. If done correctly and smartly, SWOT analysis can be a viable mechanism for the development of the marketing plan. If done haphazardly or incorrectly, it can be a great waste of time and other valuable resources. To help ensure that the former, not the latter, takes place, we offer the following directives to make SWOT analysis more productive and useful.
 Stay Focused-Marketing planners often make the mistake of conducting one generic SWOT analysis for the entire organization or business unit. In most firms, there should be a series of analyses, each focusing on a specific product/market combination.
 Search Extensively for Competitors-During the SWOT analysis, the firm must watch for any current or potential direct substitutes for its products. Looking for all four types of competition is crucial because many firms and managers never look past brand competitors.
 Collaborate with Other Functional Areas-One of the benefits of SWOT analysis is that it generates information and perspective that can be shared across a variety of functional areas in the firm. When combining the SWOT analyses from individual areas, the marketing manager can identify opportunities for joint projects and cross selling of the firm's products.
 Examine Issues from the Customers' Perspective-All issues in a SWOT analysis are not equally important with respect to developing competitive advantages and strategic focus for the marketing plan. As the analysis progresses, the marketing manager should identify the most critical issues by looking at each one through the eyes of the firm's customers. Examining issues from the customers' perspective also includes the firm's internal customers: its employees.
 Look for Causes, Not Characteristics-The problem in many SWOT analyses lies in listing strengths, weaknesses, opportunities, and threats as simple descriptions or characteristics of the firm's internal and external environments without going deeper to consider the causes for these characteristics. More often than not, the causes for each issue in a SWOT analysis can be found in the resources possessed by the firm and/or its competitors.
 Separate Internal Issues from External Issues-It is important for the analyst to maintain a separation between internal issues and external issues. Internal issues are the firm's strengths and weaknesses, whereas external issues refer to opportunities and threats in the firm's external environments. The key test to differentiate a strength or weakness from an opportunity or threat is to ask, "Would this issue exist if the firm did not exist?" If the answer is yes, the issue should be classified as external to the firm. Though student answers will vary, the most important of these issues is likely to be collaboration with other functional areas. As discussed in previous chapters, lack of communication within the firm is the most important challenge in creating a viable marketing plan.